Business or financial planning is a necessity for every company or business. Certain principles, computations, guidelines, and analysis, have to be properly followed or carried out as they apply. Things like: Cash flow analysis, net worth analysis, college and education funding, multigenerational wealth transfer, estate planning, and retirement planning are needed for the efficient running of a business. However, financial planning does not come easy to everyone. In a properly decentralised organisational system, there would be various functions assigned to various departments – depending on the staff strength of the company. In a relatively big company, the availability of many hands on deck might make the overall job of financial planning easier. In a smaller company, this may be very strenuous – unless you make use of a financial planning software.
A financial planning software, as the name implies, relates to software and computer programs that are able to calculate, synthesize and present comprehensive financial plans that address all areas of a client’s finances. In other words, it is technology’s way of making the job of a financial planner easier. While a financial planning software does not overrule the need for your personnel and staff – as human input and management would always be required – but it makes the work easier, much more accurate and is fast. There are various financial planning software that exist to perform various functions. They increase your efficiency and enables you to add value to the planning process based on your experience, knowledge and relationship. So if you are stuck at deciding whether to employ more financial planners over the use of a financial planning software, here are a few other advantages that it poses for you and your business.
Timely Information And Insight
One challenge with doing manual computations is speed. There is only so much that humans can do within a certain period of time. If you have trouble predicting expenses and revenue figures, analysing data and eventually producing accurate information in due time, a financial planning software can help. Even if you feel comfortable in the level of detail and accuracy of your analysis, the software may be able to help you create them more quickly. A financial planning software will help you drill across budget, forecast and actuals to see the impact on business performance in due time. The system you have in place as a financial planner, however, must be efficient. It must be fast enough to satisfy the nature of your work and needs of your clients. All you have to do is input the right data and you would get the right information in little or no time.
It Improves Forecast and Computational Accuracy
Asides the speed in using a financial planning software, you can guarantee accuracy. You would be able to compute projections, compare and analyse actual versus projected results, and many more. All without the chances of human error – at least as far as the output is concerned. There is still the chance of ‘GIGO’ that is, Garbage-In Garbage-Out. In other words, errors in entry would cause an ultimate error in analysis and error in output. Care still needs to be taken to ensure that there are no errors in data entry. Also, there has to be a consistent update and maintenance of the financial planning software. It is all required to ensure the accuracy of the information is undeterred.
Modernizes your organization
Remember the time when we had to use paper computations? The time of stacks of paper or big books with lines and numbers that would not only stress you but also leave you confused with random avoidable errors. Well, all that changed with the growth and development as well as the welcoming of the digital age. Now we have calculators to ensure our calculations are direct, easy and accurate; we have micro and mini computers and laptops that simplify all actions; we even have smart phones that perform everything else. Technology was never a bad idea. The same applies to the use of a financial planning software. The same way nobody uses a typewriters anymore, is the same way manual forecasts and financial analysis should be avoided. Nobody wants to work in an organization that is still backward in time. Your organizational processes will be modernized with the embrace of a financial planning software for all or most of your business needs.
When it comes with working with financial planners, there are one too many steps and analysis that aids them in achieving their end result. Rather than work with numerous working papers or open numerous excel and word sheets, a financial planning software would help you stack all your data and keep all your records in one place. You would be able to centralize your budget with forecast and actual information in one place. Rather than have the frequent occurrences of multiple versions of data and information, you would have only one set of input and output. All you have to do is back up this single version and you would be able to avoid all the challenges that come with misplaced and incomplete records.
Professional Presentation of result
After all is said and done, whatever information you have derived or whatever analysis you have made, has to be reported. If you spent countless hours building computations and using formula to manipulate your figures, then your presentation at the end of the day will look shabby. A financial planning software, has a neat and well aligned presentation format that you can present to managers and the required parties for effective decision making. The end justifies the means; hence, whatever needs to be done to ensure that the final result satisfies the purpose for which it was made must be done. More so, it can be presented to international bodies as well as facilitate peer reviews. A financial planning software is never made for only one state or one country. Therefore, comparison would be easier at the end of it all.